Tata Investment Corporation (501301) Q4 01/02 earnings summary

Executive summary

• FY ended 31 Mar 2002 total income rose to Rs.50.33 crore from Rs.44.81 crore; profit after tax increased to Rs.43.97 crore from Rs.41.13 crore amid weak markets.

• Portfolio restructuring reduced holdings to 322 scrips from 367, while book value of investments reached Rs.300.03 crore.

Financial highlights

• Total income Rs.50.33 crore vs Rs.44.81 crore; profit before tax Rs.45.12 crore vs Rs.40.83 crore; profit after tax Rs.43.97 crore vs Rs.41.13 crore.

• Dividend income was Rs.26.94 crore and net profit on investment sales Rs.20.26 crore; net interest income was Rs.1.76 crore.

• Total expenditure Rs.5.21 crore vs Rs.3.98 crore, with higher provision for long-term investment diminution cited as the main driver.

• Interim dividend of Rs.6 per share (60%) was paid; no final dividend was recommended.

Outlook and guidance

• Portfolio focus to continue through disposal of non-performing scrips, industry-profile shifts and investment in higher-yielding shares.

• FY 2002 budget removal of dividend-income tax exemption expected to raise tax impact and affect net profit; increased share capital also brings servicing considerations.

• Economic and market outlook remained uncertain, with positive indicators alongside difficult factors to overcome.